Debt Collection and Choosing the Right Type of Collection Process
When you owe money, it can often feel like people are coming out of the woodworks with their hands out, which even though you may legitimately owe them money, doesn't necessarily feel good.
For those who are in debt, this almost always means talking with a debt collector, who will attempt to recover some or all of the money owed.
Debt collectors and collection agencies can often act very aggressive, but they are governed under the Fair Debt Collection Practices Act, which provides a strict set of rules that must be followed by these sorts of agencies.
By understanding and asserting ones rights, one can greatly minimize the effects these agencies may have on their life, although business debts are often not covered under these regulations.
The term debt collector can be rather general and refers to someone who attempts to recover debt, either debt that is owed to them or debt that is owed to others.
There are several types of collection agencies, but they can basically be divided into third-party debt services and in-house debt collection agencies.
The latter, in-house debt recovery, is used to refer to businesses or corporations who are collecting their own company's debt.
Often, in-house debt recovery agencies are not held to the same standards and regulations as third-party debtservices, but this varies state by state.
Third-party debt collectors, or Outside Debt Collectors, are companies whose whole purpose is collect money owed to other separate companies.
For example, a hospital may hire an outside company to handle the collections of their outstanding debt.
Typically, outside debt collection agencies are held to stricter standards than in-house debt collectors.
There are advantages to both types of collection agencies, with third-party collection agencies sometimes being less expensive to work with, as they have lower overhead.
Outside debt recovers also are often better prepared and a great deal of the cost advantage comes from not having to setup and implement a new division within the business to not only handle the collections, but also ensure the company is acting within the limitations of the law.
As a consumer with debt, it is very important to familiarize oneself with the requirements and regulations presented in the Fair Debt Collection Practices Act.
The FDCPA has a number of rules and regulations in it that govern how and when a collection agency can contact a debtor.
Failing to meet these requirements can result in legal problems in fines for the debt collectors, as well as opening them up to lawsuit.
As a result, many find that the complications and risks involved with the running of in-house debt collections, outweighs the loss of freedom found with using Outside Debt Recovery Consultants.
For those who are in debt, this almost always means talking with a debt collector, who will attempt to recover some or all of the money owed.
Debt collectors and collection agencies can often act very aggressive, but they are governed under the Fair Debt Collection Practices Act, which provides a strict set of rules that must be followed by these sorts of agencies.
By understanding and asserting ones rights, one can greatly minimize the effects these agencies may have on their life, although business debts are often not covered under these regulations.
The term debt collector can be rather general and refers to someone who attempts to recover debt, either debt that is owed to them or debt that is owed to others.
There are several types of collection agencies, but they can basically be divided into third-party debt services and in-house debt collection agencies.
The latter, in-house debt recovery, is used to refer to businesses or corporations who are collecting their own company's debt.
Often, in-house debt recovery agencies are not held to the same standards and regulations as third-party debtservices, but this varies state by state.
Third-party debt collectors, or Outside Debt Collectors, are companies whose whole purpose is collect money owed to other separate companies.
For example, a hospital may hire an outside company to handle the collections of their outstanding debt.
Typically, outside debt collection agencies are held to stricter standards than in-house debt collectors.
There are advantages to both types of collection agencies, with third-party collection agencies sometimes being less expensive to work with, as they have lower overhead.
Outside debt recovers also are often better prepared and a great deal of the cost advantage comes from not having to setup and implement a new division within the business to not only handle the collections, but also ensure the company is acting within the limitations of the law.
As a consumer with debt, it is very important to familiarize oneself with the requirements and regulations presented in the Fair Debt Collection Practices Act.
The FDCPA has a number of rules and regulations in it that govern how and when a collection agency can contact a debtor.
Failing to meet these requirements can result in legal problems in fines for the debt collectors, as well as opening them up to lawsuit.
As a result, many find that the complications and risks involved with the running of in-house debt collections, outweighs the loss of freedom found with using Outside Debt Recovery Consultants.
